Samsung has reported preliminary earnings for the first quarter that beat analysts’ estimates on robust demand for new smartphone models and memory chips that go into servers.
Operating profit increased 50% to 14.1 trillion won ($11.6 billion) for the three months ended March. Analysts estimated 13.4 trillion won on average. Sales advanced 18% to 77 trillion won, also higher than expected. Samsung will provide net income and divisional performance when it reports full earnings on Apr. 28.
As reported by Bloomberg, Samsung is the first major tech company to report numbers for the first quarter, a period disrupted by war in Ukraine, sanctions on Russia and resurgent Covid-19 infections in China. Still, datacenter expansions and the global shift to 5G communications continue to spur demand for semiconductors that account for a large chunk of the conglomerate’s profit.
“We expect solid earnings growth in 2022 on the back of healthy earnings rebound in semiconductor and display in 2H 2022,” Peter Lee, an analyst at Citigroup, said in a note ahead of the results. “Specifically, we expect Samsung’s memory business to benefit from the memory pricing strength throughout 2H 2022.”
In smartphones, another Samsung growth pillar, cumulative sales of the Galaxy S22 series are likely to exceed one million units in South Korea this week, the company said. Bloomberg reported that the new flagship lineup is selling at a 20% faster clip than the previous S21 series. In the U.S., the S22 sold 60% more than the S21 in its first three weeks on the market, according to research firm Counterpoint.